Vi
The tightening of credit for property development has had a major impact on the market and could cause an industry crisis this year, experts fear.
Since 2020 developers have been dependent on bank loans as the government imposed stricter rules for bond issuance, and the latest tightened policy on credit is a "knock-out blow" to an already weakened market, Huynh Phuoc Nghia, a senior consultant at Global Integration Business Consultants said.
The State Bank of Vietnam in April ordered banks to tighten lending to developers, especially in areas where "land fever" was reported, to mitigate risks.
This has caused a cash crunch, forcing many developers to put expans
Developers jacked up prices amid the property fever last year and earlier this year and now get to choose whether to continue with that or try to meet the actual demand there is with appropriate prices, he said.
Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, said at a recent forum that developers could mobilize funds from buyers to build, but this is only possible if construction progress is on schedule.
Many legal issues are stalling property projects, making developers unable to raise money from buyers or banks, he said.
These need to be resolved as soon as possible to ensure the real estate market is sustainable and steady, he added.
Souce: Vnexpress
